U.S. Steel Canada to be severed from parent company

The Ontario Superior Court recently approved a plan for U.S. Steel Canada (USSC) to be severed from its parent company U.S. Steel.

The Oct. 9 ruling in USSC’s bankruptcy protection proceedings allows the company to stop contributing to pension payments, health benefits and prescription drug coverage for pensioners. More than 20,000 former USSC employees will be affected.

The company, currently restructuring under the Companies’ Creditors Arrangement Act, argued that avoiding those payments is necessary to allow it to succeed as it emerges as an independent entity.